How to Start a Billing Service Business from Home

January 25, 2005 | By | Reply More

QUESTION ON How to Start a Billing Service Business from Home

I want to do third party billing at home. I do this part time outside the home. I do not know how to go about asking this company for their business. I work for an agency, they will not tell me the steps to take. Said I had to be onsite.

– Nancy


Advice by Tammy Harrison

Dear Nancy,

I think you have a great idea. Being home-based is very rewarding in many ways. The first thing you need to do is to check to see if you have a contract with your current company – if not, you should be fine. If you are contracted with them, please check for a “no-compete clause” to be sure that you can directly solicit the business you speak of.
The next thing you need to do is be sure you have all of the equipment and supplies set up to do the work from your home. Computer hardware and software? Communications system? Look at what type of equipment you use at the office and try to duplicate it (or obtain better).

You can bet if you work for an agency that they are receiving your wages as well as a percentage for them (probably between 5% to 15%) as well as their portion of your deductions (such as income tax withholding and Social Security).

You need to decide what your time is worth to do the third party billing at home. It would be more than what you currently make because you will be paying for your own overhead. A good resource is the Utah State University Home-Based Business pricing resource found at

After you have obtained the necessary equipment and created your pricing structure, you are ready to solicit business. If you feel pretty confident about the people you currently work for, I would make an appointment with them (not during your current working hours) and discuss the possibilities of them becoming your client. Use confidence and communication to the best of your ability. If you are not sure about their receptiveness, it may be better if you start marketing your services elsewhere so you can pick up a client or two “on the side” and then, if you do approach them and they say *no*, you will at least have other business to fall back on.

Either way, becoming a business owner is very refreshing and quite stimulating and with a positive attitude I am sure you will do well!

Tammy Harrison

Recommended Resources on How To Start a Billing Service Business

Article originally published in January 2005. Updated February 25, 2012Tammy Harrison is a successful home-based working mom for over five years. She holds a degree from Mizzou in Consumer Economics. Her business focuses on Marketing and Creativity for Small Businesses as well as numerous other small businesses.

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